I have 22 consecutive profitable trades of 15% or better. How is this possible? Every day there are hundreds of stocks setting new highs, no matter what happens in the overall market. Many of these stocks are still at very reasonable valuations. Afraid of buying stocks at their highs? Think of it this way: a new high is really a future floor for companies with solid financial underpinnings. Quantitative momentum modeling makes it easy to identify stocks that can continue this upward momentum trend. Why does this happen? It's really very simple..ask me about what investors and cows have in common. I am $$$ MR. MARKET $$$. I AM HUGE!!! Bring me your finest meats and cheeses. You can join in on the fun. Register for free and you'll be able to post messages on this forum and also receive emails when $$$ MR. MARKET $$$ makes his own trades. ($$$MR. MARKET$$$ is a proprietary investor and does not provide individual financial advice. The stocks mentioned on this forum do not represent individual buy or sell recommendations and should not be viewed as such. Individual investors should consider speaking with a professional investment adviser before making any investment decisions.)
If this is your first visit, be sure to
check out the FAQ by clicking the
link above. You may have to register
before you can post: click the register link above to proceed. To start viewing messages,
select the forum that you want to visit from the selection below.
Dave, to better answer your question I do a series of “Delta Relative Strength Sorts” of sectors in comparison with the S&P500. For example, last swing point low on 1/03/06 to current the S&P gained 1.48% in value. The following sub-sectors place in the top 5
Semi-Memory chips +17.33%
Building Materials Wholesale +12.45% and so on
Then I’ll pick out other swing points or major lows from different time points and see what rises to the top. This does not indicate that I trade a stock with-in the sector, but it does let me know the money was flowing into Semi-Memory chips when it has gone up 17.33% in such a short time. By applying this simple technique it helps in finding rotation of money. This simple technique is part of my annalist of the sectors and does pretty well at picking out rotation and influx of money flow within the sectors themselves.
Just wanted to clear this up with a more defined answer.
This is an example of the Delta Relative Strength as it rotates through time as sectors rise and fall off the top 20 list. Notice how many sectors keep hitting in the top 5-10 spot. This does not signal a trade but just where the money has been flowing with in the sectors on a relative basis from past swing highs or lows.
Comment